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Home » Business And Finance Articles » 0 Apr Credit Cards How Can They Do That

0% APR Credit Cards: How Can They Do That?

During the days when the federal bank interest rates were at its lowest, back in 2002 and 2003 to be specific, countless credit card providers offered 0% APR credit cards to many consumers. Needing only to pay the outstanding balance, smart consumers were able to charge up to their limits without incurring monthly interest charges. The question that some people were asking when these cards were at their peak of popularity was this: how do credit card providers make money off of this type of plan? Well, good question! Let's examine 0% APR credit cards and the way they really work and if they are still available to you today. You just might be surprised at the answers!

Annual Fees. Depending on the credit card provider, some card holders have been charged an annual fee for the privilege of having a 0% APR credit card. Annual fees for some of these cards generally run from $15 to $20, even higher.

Late Fees. You would think that if customers had a 0% APR credit card that they would always pay them on time, right? Well, many do not. So, every time a payment is received late credit card providers would assess a late fee. With fees ranging from $19 to $39, that can add up especially if someone is habitually late.

Default Rate. Oh, that 0% rate is nice on the surface. Read the "member's agreement" and you will quickly learn that late payments will not only incur a fee, but a "default rate" would be charged bumping up the annual percentage rate to double digit figures on existing balances as well as on new charges! If you are late you can say, "bye, bye" to your 0% APR credit card in no time.

Short Term Offer. 0% APR credit cards are still offered today. Almost always they are cards for new card holders that offer a 0% rate for a limited period of time, such as twelve months, before a higher rate kicks in, which usually is around 12%. Some cards will allow you to transfer existing credit card balances over to the new card and receive the 0% rate on transferred balances. What a great way to cut your costs and save money too!

Don't worry about credit card providers having difficulty making money even with low or 0% APR credit cards. Rates have since increased, in some cases dramatically, making it more difficult to find a low interest rate credit card. Still, great offers exist, but you must know where to find them. Searching online for your 0% APR credit card is a great way to quickly find and compare all of the best offers available.

Copyright 2006 Edward Vegliante

And here is another random article you might be interested in...

How To Profit From Initial Consultations

"I'd love to work with you, but..."

How many times have you heard these words? As a professional service provider looking to grow your business, isn't it sometimes frustrating to hold an initial session with someone who you'd love to work with but the potential client has a whole list of reasons why s/he would love to work with you, but...?

As in, "I'd love to, but.."-"I can't afford it." Or "I'm not sure if it will work for me." Or "I'm going to try to work on it by myself and will get back to you."

Here are some tips and strategies for overcoming the dreaded "I'd love to work with you, but..." syndrome. These are gleaned from my own personal experience in building my coaching business, as well as tips & strategies I learned in the SalesCoachTraining.com program. I'm happy to share these with you because I really believe it is much easier to run your business when you can afford to do so because you have enough clients who pay you well.

So, there are 10 steps to consider:

1. From the beginning, make sure your potential client has a need for your service and can afford it. I can't tell you how many times professionals hold a free consult, and then find out, after the 30-45 minutes is over that the potential client can't afford the service. It might sound a bit severe, but if you're in business to make money, you need to make certain you're spending your time in the most profitable ways.
2. Consider cutting down the length of your initial consultations. When I first started out, I used to offer full initial sessions of 45 minutes or more. Now I offer 10-15 minute sessions. Within this time frame I can tell if the prospective client and I are a good match. If the client doesn't sign up I won't feel bad or annoyed since I didn't invest a great deal of time in the consult. If you are having trouble converting initial consults into paying clients, it may be because you're "giving away" too much at the beginning and the client is not left wanting more.
3. Frame the call. At the start of the call, gently instruct the client that at the end of the allotted time, they will be called upon to make a choice about the next action. Help the client recognize that you are happy to assist them in making a decision and that you aren't tied to the outcome of their decision. The simple words, "I'm here to help you make the best decision for you and I'm not tied to any particular outcome." have gone a long way to create trust rapidly and easily.
4. Listen carefully. Spend the time with the client listening "under the surface" for larger themes and bigger issues. Put forward one or two insights that come from your deep listening. Take care to avoid offering too many solutions or too much advice.
5. Reflect back. Near the end of the allotted time, take a few minutes to summarize what you heard and what the client sees as desired goals. If appropriate, take this time to let the client know how you've helped other clients with similar concerns.
6. Take the lead. If you'd like to work with the client, say so. Let him/her know that you really enjoyed spending time with him/her today and you are excited about being able to help him/her reach their goals.
7. Don't push. If a client asks for more time to make a decision or wants more information give only as much time as you are comfortable. It's good to ask in this case a question like: "Is there anything more you would like to know about me that would help make your decision easier or clearer?". In this way, you keep the dialogue open and find out what concerns the client may have.
8. Don't take it personally. If the client doesn't sign up, despite your best attempts, let it go. Somehow s/he was not a match for your business and this is ok. By going to shorter consults you can do more of them in a day. Sometimes you do have to go through a certain number of No's to get to Yes.
9. Avoid adjusting your prices. It's not worth it for you to drop your prices just to get the client. I have had clients ask for my fees and then say, "Wow. That's really high." In the past, I would have responded back in some way. Now I just agree. "Yes, they are." And, if applicable, I might follow up by offering a product or group coaching option that might better suit their financial constraints.
10. Practice and practice some more. Initial consults flow more easily and proceed more satisfactorily the more you practice them. Aim to make a lot of contacts and practice these skills. You'll find your confidence and success grow exponentially.

Dr. Rachna D. Jain is a sales and marketing coach and Director of Operations for SalesCoachTraining.com. To learn more or contact Dr. Jain directly, please visit http://www.salesandmarketingcoach.com, and sign up for her free newsletter, Sales and Marketing Secrets.